RBA Slams ASX Over Governance Failures

The Reserve Bank of Australia (RBA) has again expressed disappointment with the Australian Securities Exchange's (ASX) performance in key areas, including governance and operational resilience.

In its latest assessment for FY26, the RBA noted that while ASX had made significant strides in strengthening its Clearing House Electronic Subregister System (CHESS) resourcing and contingency arrangements following a December 2024 outage, it still fell short of expectations in these areas.

The RBA upgraded its rating on ASX clear and ASX settlement but emphasized that this did not indicate a broader improvement in ASX's management of operational risk. The next assessment will focus on governance and independence of the clearing and settlement facilities, continuity of critical services, financial risk models, data, and controls, as well as ASX's transformation.

RBA assistant governor (financial system) Brad Jones stated that ensuring ASX's organizational reset allows it to discharge its unique responsibilities in Australia's financial system will require sustained commitment and focus. He highlighted the challenge for ASX is to demonstrate that it can successfully deliver its transformation program without compromising safe and reliable operation of its critical infrastructure.